Rajasthan Chief Minister Ashok Gehlot on Saturday welcomed the Union Cabinet’s decision allowing foreign direct investment (FDI) in multi product retail in the country. The decision would help farmers get remunerative prices for their produce and eliminate the role of middlemen, Mr. Gehlot claimed. He also hailed the Cabinet’s decision to leave the implementation of the decision to the States.
“The multi brand retail and the foreign direct investment will prove a boon to the rural economy. This will help employment and enhance the income of the rural people,” Mr. Gehlot said in a statement here. He said the provision for compulsory 50 per cent investment in building of cold storages would help employ lakhs of youth.
He added that FDI in retail would also help small and medium industries as foreign investors were bound by the condition to source 30 per cent of their procurements from them. He also expressed hope that the entry of multi brand retail chains would be advantage to the middle class and the poor, as they would get better quality material at a cheaper price.
